Healthcare sector comment: Wound care, hygiene and infection control

Players in the healthcare market are focused on minimising health costs by reducing hospital stays and by using cost effective products to support this strategy. Over the last 12 months we have seen a continued interest in wound care, hygiene and infection control M&A activity.

The worldwide wound care market reached revenues of €17.7bn ($20.9bn) in 2016, based on sales at manufacturers’ level, and the advanced wound care products market is expected to grow at a CAGR between 8.1% and 8.5% between 2017-20231.

With an aging demographic and the rising occurrence of complex chronic conditions, such as Alzheimer’s, Parkinson’s, diabetes, strokes, cancer and heart conditions amongst others, means that there are more patients than ever requiring care. These patients being triaged and moving through the hospital’s elective surgery system is putting pressure on caregivers and increasing the need for more sophisticated means to care, to help reduce infections, nurse time on non-core activities and help patients recovery quickly – post surgical procedures.

The emerging generation of wound care products and technologies are well positioned to capitalise on the growth in this market. Besides the always-improving synthetic dressing materials, newer technologies in wound treatment include the different species (xenogeneic) tissue scaffold, dermal substitutes, recombinant growth factors and electric field-based dressing to name a few.

Investors continue to be attracted to the infection industry, with the global infection control markets expected to reach €219.1bn ($258.3bn) by 20252. This market is driven by rising concerns with respect to a significant increase in hospital acquired infections globally.

1(GLOBE NEWSWIRE) – The « Wound Care Market Share Analysis »

2(Grand View Research, Inc) – Infection Control Market Size Worth $258.3bn by 2025

At Clearwater International we will continue to watch the wound care, hygiene and infection control markets with interest. We expect to see businesses across the globe take advantage of the growing wound care market, and evolve with the technological advancements that we have seen in recent years.

Below are some of the deals that we have highlighted in the wound care, hygiene and infection control market from the last 12 months.

CM Hospitalar S/A the Brazil-based distributor of medical and hospital supplies has agreed to acquire Cremer S.A, the Brazil-based supplier of healthcare products including wound care, first aid and hygiene products for €190.8m.

Medline Industries Inc the US-based distributor of healthcare supplies has agreed to acquire Centurion Medical Products Corporation, the US-based manufacturer of medical products, including wound care products.

Verna Group the UK-based provider of infection control products and services has acquired the UK-based Synergy Health Healthcare Consumable Solutions business from Steris plc, which supplies infection control and wound care products.

Owens & Minor Inc the US-based healthcare services company has agreed to acquire the infection prevention business of Halyard Health, Inc for €611.2m.

Owens & Minor in particular was an interesting deal as it took an aggressive approach to solidify its share of the market by improving its product offering globally. Its acquisition of Halyards infection prevention business is evidence that businesses are moving fast to take market share in this rapidly consolidating market dominated by big players such as Steris, Elis, Ecolab and Hartmann.

Elis SA the listed France-based provider of linen and workwear rental has acquired Berendsen plc, the UK-based provider of textile and laundry services for €3.1bn.

Paul Hartmann AG the listed Germany-based manufacturer of medical and hygiene products for wound care has acquired the Lindor Product Portfolio of Proctor & Gamble Company, the Spain-based manufacturer of incontinence products.

Integra LifeSciences Holdings Corporation the listed US-based manufacturer of medical instruments has acquired Derma Sciences Inc, the US-based provider of medical devices to the wound care market for €158.3m.

Ambu A/S the listed Denmark-based provider of healthcare solutions, has acquired invendo medical GmbH, the Germany-based manufacturer of sterile single use endoscopy products for €225m.


Medical Equipment & Supplies

K Bengtssons Mekaniska AB the Sweden-based manufacturing company has acquired Proton Caretec AB, the Sweden-based provider of surgical and medical instruments.

Micromed S.p.A the France-based manufacturer of electro medical devices has acquired SIGMA Medizin Technik GmbH, the Germany-based manufacturer of neurological diagnostic equipment.

Altus Capital Partners the US-based private equity firm has agreed to acquire MGC Diagnostics Corporation, the US-based medical technology company for €36.7m.

Bunzl plc the UK-based distribution and outsourcing company has agreed to acquire Interpath Services Pty Ltd, the Australia-based laboratory products business.

ICU Medical Inc the listed US-based manufacturer of medical devices has acquired Medical Australia Ltd, the Australia-based manufacturer of medical devices for €6.8m.

M3 Inc, the listed Japan-based provider of medical services through the internet, has acquired Jamecs Inc the Japan-based distributor of medical and healthcare equipment.


Health and Social Care

Fremont Realty Capital the US-based real estate arm of Fremont Group has acquired Porthaven Care Homes LLP, the UK-based elderly care home operator.

LHC Group Inc the US-based health care provider has acquired Almost Family Inc, the US-based provider of home healthcare services for €864.1m.

Inspired Villages Group Limited the UK-based operator of retirement villages has acquired Renaissance Villages Ltd, the UK-based operator of retirement communities for €165.1m.

Shanghai Fosun Hospital Investment (Group) Co Ltd. The China-based investment holding company has agreed to acquire a 60% stake in Shenzhen Hengsheng Hospital, the China-based hospital operator for €191.7m.

Esperi Care Oy the Finland-based residential care for senior citizens provider has acquired Kotihymy Oy, the Finland-based the elderly care home operator.

Medical Properties Trust Inc the US-based real estate investment trust has agreed to acquire Three MEDIAN rehabilitation hospitals in Germany for €80m.


Pharmaceuticals and Biotech

Ascendis Health Limited the South Africa-based distributer of health products has agreed to acquire Kyron Laboratories, Ltd the South Africa-Based manufacturer of pharmaceutical products for €27.8m.

Daiichi Sankyo Co Ltd the Japan-based pharmaceutical manufacturer has agreed to acquire Kitasato Daiichi Sankyo Vaccine Co Ltd, the Japan-based manufacturer of biological drugs.

SK Capital Partners LP the US-based private equity firm has acquired Perrigo API Ltd, the Israel-based manufacturer of OTC products for €93.9m.

Grupo Farmaceutico Biotoscana S.A. the Colombia-based pharmaceutical products company has acquired Laboratorio DOSA S.A. the Argentina-based manufacturer of pharmaceutical products for €25.6m.

Ajinomoto North America Inc the US-based manufacturer of Amino Acids has acquired Cambrooke Therapeutics Inc, the US-based provider of products for medical nutrition needs for €55m.

Clinigen Group plc the UK-based speciality pharmaceutical company has acquired Quantum Pharma plc, the UK-based pharmaceuticals manufacturer for €170.8m.